Question

The entry to adjust the accounts for salaries accrued at the end of the accounting period is select one:

Answer 1

C. debit salaries payable; credit salaries expense

Answer 2

Answer:

d. debit salaries expense; credit salaries payable

Explanation:

Accrual in accounting means recognizing expense in the books of account in the period it is incurred instead of when cash is actually paid and recording or recognizing revenue in the period it is earned instead of the period cash is actually received.

In this case, accrued salary is a salary incurred in a period which will be paid in the future, It must be debited to expenses account so as to be matched against the revenue that it generates. This is consistent with both accrual and matching concepts in accounting.